How to Secure a Promissory Note Without a Mortgage
- 1). Start with a blank promissory note, which can be obtained from a document supply store, stationery store or from your attorney. It's also possible to download sample promissory notes from the Internet for free.
- 2). Fill in the full legal names of the parties the promissory note pertains to with their contact information. Fill in the number of months the promissory note will last for, the monthly payment expected, the monthly due date, the full amount of the balance owed, provisions for canceling the agreement, what happens if the payer defaults on the note and provisions to decide on how to settle disagreements.
- 3). Fill in the collateral the promissory note will be attached to in case the payer defaults on the note. If you are using something like promised rights or monies such as lottery winnings or court settlements, specifically write what it is, such as "lottery winnings," "court settlement payout" or "royalties from--" and then specifically list identifying information attached to the transactions. This could include a specific case number that is being held or was decided in a county court, the name of the lottery won and the date, any identifying number the lottery commission has assigned to the winnings or the name of the author of publication or music titles sold for royalties.
If you are securing vehicles such as RVs, boats, motorcycles or airplanes, write specifically the type of vehicle with the make, model and vehicle identification numbers. If you are assigning other household goods, list them individually along with any corresponding serial numbers, if any, such as for electronic devices. - 4). Review the note one final time to ensure it is correct and have both parties sign in ink.
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